Health Insurance in New Zealand: Market Research Report

Overview

The Health Insurance in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

Industry Analysis & Industry Trends

The Health Insurance industry has recorded steady growth over the past five years. Rising premiums have underpinned industry growth over the period. Industry operators have reported an increasing volume of claims paid over the past five years, on the back of a rising population aged 50 and over. This has forced health insurers to raise premiums to maintain profitability. Industry operators have also recorded growth despite private health insurance membership numbers declining over the past five years. Industry revenue is expected to increase at an annualised 4.2% over the five years through 2017-18, to total $1.5 billion. Younger demographics taking up private health insurance through employer-subsidised group plans is expected to contribute to industry revenue growing by 5.5%...

What is the Health Insurance in New Zealand industry?

The Health Insurance industry displays high barriers to entry. Start-up requirements largely relate to capital requirements. The Insurance (Prudential Supervision) Act 2010 sets out solvency standards for insurers, which require providers to hold significant reserves. Generally, insurers are required to maintain $3 million of capital, although some exemptions exist for smaller operators. This attempts to ensure that insurers have sufficient funds to pay out large claims to policyholders and debt to creditors.

Another barrier to entry and success is the requirement for health insurers to establish and maintain a network of health-service providers. The industry's largest operator, Southern Cross Medical Care Society, maintains a list of affiliated providers that its members use. The...